The first-ever Starbucks on the ‘L’ will open its doors later this year at the North/Clybourn Red Line station. The addition of Starbucks further expands the variety of concessions already available to CTA customers and marks the largest national retailer to lease a CTA-owned space.
The space was an attractive location for the national chain as it is located adjacent to the Apple store at the North/Clybourn stop. “The high customer traffic on the Red Line in addition to foot traffic near the Apple store is an attractive opportunity for any concession retailer and we are pleased Starbucks will be our latest tenant,” said CTA President Forrest Claypool. “We continue to work toward leasing additional spaces to add even more customer amenities across the system.”
A total of 32 bids were received for the 776-square-foot location at 1599 N. Clybourn Avenue. Starbucks submitted the highest bid per square foot for the 10-year lease, with options to extend the agreement after the initial term. Annual rent for the first five years is projected at $75,000 per year with 10% increases at year six and at the beginning of the first and second year options. The third and fourth option terms will be determined by appraisal. The total 10-year base term lease is projected to generate $787,500.
Chicago Transit Board approval of this lease brings the total number of leased spaces across the transit system to 89.
Concession spaces are advertised with Jones Lang LaSalle and reflect market value for similar properties in each respective area. CTA amended its purchase and sales regulations in March 2011, in order to allow Jones Lang LaSalle to broker leases of available retail concession properties on the open market. Information on available retail concession spaces can be obtained at www.ctarealestate.com
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